Dear,
what about ur RAM. gta-vice city is a havy graphic game. havy game need more ram and more capacity of vga.
check the game requirements in the cover of ur cd. if i matches to ur system then it shouldn't freez.
ur vga card capacity is also less. so first check the requirement, if u find it. if can't then i think ur ram should 256 and ur vga should 64mb.
check it all.
regards,

Your processor barely meets the system requirements while your video card falls below the requirements as Vice City needs a 32mb card WITH DirectX 9 support. You could upgrade the video, but you would still be in the same situation with the processor barely making it. Best bet is to think about getting a new PC.

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Hi It would with better if you will use joystick controller to enjoy playing GTA , Its just like your playing game console by using joystick controller. You check the price of joystick controller for your computer online or nearest computer center

-The specification of your computer meets the system requirements and I believe that your not going to have any problem installing GTA also playing GTA. Minimum System Requirements:

I would suggest you not to go for a processor upgrade, if you want to play games. You should consider upgrading your graphics Card(GPU). The processor that you mentioned above is enough for playing High-end games when combined with a good graphics Card. Upgrading your processor will boost very little game performance. But when you will upgrade your graphics Card. You will notice great boost in game performance and more new games will be supported.
Two major manufacturer of Graphics Card are NVIDIA and ATi. You can opt any one of them. Nvidia GPUs are considered as a Good Performer. But also ATi is known for its long lasting life. Both the manufacturers produces a long list of models. Opt for the one that suits your Budget and the performance.
Hope this will help for sure.....

you have ruled out the video cardand since cooling does not seem to be an issue on you cpu, your next step is to switch your power supplyafter that one is ruled out, your next replacement is your motherboard.